Chambersburg-Waynesboro, PA Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Chambersburg-Waynesboro, PA, Federal Housing Finance Agency (FHFA) house price index (HPI) is a weighted, repeat-sales index measuring average price changes in single-family houses in the metropolitan statistical area (MSA). The HPI is a valuable tool for tracking house price trends at the local level over time.

Between 2000 and 2006, home prices in the Chambersburg-Waynesboro MSA increased by nearly 50%. This was well above the national average of just over 40%. However, since 2006 prices have fallen sharply. In the years following the financial crisis, prices fell by more than 20%. They have since recovered somewhat, but remain well below their pre-crisis peak.

The sharp increase in home prices between 2000 and 2006 was driven by a number of factors. Low interest rates made borrowing easier and more affordable for potential buyers. The strong job market led to higher incomes and increased demand for housing. And finally, limited supply helped to drive up prices as well.

The subsequent fall in prices was caused by many of the same factors that had previously helped to drive them up. The financial crisis led to higher unemployment and lower incomes, making it harder for people to afford a home. At the same time, foreclosures increased as people struggled to make their mortgage payments. This put downward pressure on prices as well.

Looking forward, it is difficult to say where home prices will go from here. Interest rates are currently at historically low levels, which could help to support further price increases. However, economic uncertainty remains high and many people are still struggling financially. This could limit any further gains in the near future.